Tax residency for college student

Forum|Forum|4 years ago
June 2, 2021
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My college student lives in TX, earns all his income there. He has no intention of returning to our place of residency, and wants to take up residency there. We do not qualify for education credits though he’s a full time student. Would it be more advantageous to not take him as a dependent and encourage him to take up TX residency and file his own taxes as a non-dependent?

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Hal_Al

Employee

Q. Would it be more advantageous to not take him as a dependent and encourage him to take up TX residency and file his own taxes as a non-dependent?

A. That's not optional. You are not required to claim him as a dependent. But, if he qualifies as your dependent. he MUST check the box on his form 1040 that says he CAN be claimed as a dependent.

As to state of residency; the rules are complex. In general, a student-dependent is still a resident of his parent's home state, unless he makes specific moves to change it. Intent is germane, but is not, alone, enough to qualify as a resident of the college state.